LIVE: FED Chairman Jerome Powell Speaks After Interest Rate Decision – Here Are The Highlights

After the FED kept interest rates constant between 5.25% and 5.50%, as expected, all eyes turned to Powell’s press conference, which started at 21:30 GMT.

After the interest rate decision was announced as expected, the Bitcoin price showed a rather lackluster reaction and remained almost stable.

Powell has now made a statement at the meeting in question and is answering questions from members of the press. Here are the important highlights from Powell’s statements:

• We are determined to return inflation to the 2% target.
• The economy does not work without price stability.
• The policy situation is restrictive.
• The full effects of the tightening have not yet been felt.
• Given where we are, the FOMC is treading carefully.
• The FED is strongly committed to reducing inflation to its 2% target.
• We will make our decisions based on the totality of the data and the balance of risks.
• The economy grew well above expectations.
• The labor market remains tight.
• Labor supply and demand conditions continue to come into better balance.
• Employment gains are at a strong pace, but less so than earlier in the year.
• Nominal wage growth showed some signs of easing.
• Labor demand still continues to exceed supply.
• Inflation has remained moderate since the middle of last year.
• A few months of good inflation data is just the beginning of what needs to be done.
• There is ‘a long way to go’ for inflation to reach 2%.
• The restrictive stance of the policy puts downward pressure on inflation.
• We are committed to maintaining a sufficiently restrictive stance.
• Further interest rate increases may be necessary.
• We pay attention to the latest data showing a revival of economic data and labor demand. These could put further progress on inflation at risk.
• We will take into account cumulative tightening, delays, and economic and financial developments when determining whether we need further tightening.
• In order to reduce inflation, it may be necessary to remain below potential growth and soften labor conditions.
• We’re not sure the policy is restrictive enough.
• Tighter financial conditions resulting from longer periods of higher interest rates, a stronger dollar and lower equities could be important for future interest rate conditions.
• Tightening conditions may need to be permanent.
• We did not make any decisions about the next meeting and did not talk about it.
• It is not true to think that after one or two meetings leave the interest rate constant, the rise will not come to the agenda again. We haven’t decided yet.
• FED staff did not include recession in their forecasts at this meeting.
• It is difficult to predict how many interest rate increases tightening financial conditions will lead to.
• Interest rate reduction is not on our agenda right now.
• The question the FOMC is asking now is ‘should we raise more?’ The next question will be how long the policy will be kept restrictive, interest rate cuts are not on the agenda yet.
• We see the effects of high interest rates on the housing market and durable consumer goods purchases.
• We are not considering interest rate cuts at all right now.
• If we decide we need to tighten, we will tighten.
• We look at the labor market, economic growth and financial conditions.
• The government shutdown is a potential source of risk.
• The FOMC monitors geopolitical developments for their economic impact.
• The big picture is that we are making progress on the labor market and inflation, and we are focused on making policy sufficiently restrictive.
• We still believe we should see slower growth.
• Everyone is relieved that we were able to reduce inflation without increasing unemployment.
• The slowdown in interest rate increases allows us to better understand how much more we need to do, if we need to do more.
• We’ve come a long way in this rate hike cycle and are nearing the end of the cycle.

The FED also shared a statement with the publication of its interest rate decision at 21:00.

In the statement, it was stated that the FED continues to monitor the developing impact of past interest rate increases while considering further steps, aware of the “delays in monetary policy’s impact on economic activity and inflation, as well as economic and financial developments.”

This expression was used to indicate that there was a degree of patience in deciding on further interest rate increases and that it was accepted that the full impact of the 5.25 point interest rate increases since March 2022 has not yet been felt.

*This is not investment advice.